Sponsorship Agreement (Australia)
This Sponsorship Agreement ("Agreement") is entered into as of [Start Date] (the "Effective Date") by and between:
[Sponsor Name] (ABN [Sponsor ABN]), with its principal place of business at [Sponsor Address], [Sponsor City], [Sponsor State] [Sponsor Postcode], represented by [Sponsor Contact Person] (the "Sponsor"); and
[Sponsored Party Name] (ABN [Sponsored Party ABN]), with its principal place of business at [Sponsored Party Address], [Sponsored Party City], [Sponsored Party State] [Sponsored Party Postcode] (the "Sponsored Party").
The Sponsor and the Sponsored Party are each referred to as a "Party" and collectively as the "Parties".
RECITALS
WHEREAS the Sponsored Party is organising or producing the following event or program: [Event Name] (the "Event"), described as follows: [Event Description]; and
WHEREAS the Event is scheduled to occur on [Event Date] at [Event Location]; and
WHEREAS the Sponsor desires to provide financial support to the Sponsored Party in connection with the Event in exchange for promotional benefits; and
WHEREAS the Parties wish to record their respective rights and obligations in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the Parties agree as follows:
1. SPONSORSHIP LEVEL AND EXCLUSIVITY
1.1 The Sponsor shall serve as a [Sponsorship Level] level sponsor of the Event.
1.2 The Sponsor's exclusivity arrangement is: [Exclusivity]. The Sponsored Party shall not solicit, accept, or permit sponsorship from a competing entity within the Sponsor's product or service category without the Sponsor's prior written consent, to the extent applicable to the exclusivity arrangement.
1.3 All promotional representations made in connection with this sponsorship must comply with the Australian Consumer Law (Competition and Consumer Act 2010 (Cth) Schedule 2) section 18, which prohibits misleading or deceptive conduct in trade or commerce, and with the AANA Code of Ethics.
2. SPONSORSHIP FEE AND PAYMENT TERMS
2.1 In consideration for the rights and benefits granted under this Agreement, the Sponsor agrees to pay the Sponsored Party a total sponsorship fee of AUD $[Sponsorship Amount] (the "Sponsorship Fee"), exclusive of GST unless otherwise stated.
2.2 GST: The parties acknowledge that the Sponsorship Fee may be subject to Goods and Services Tax (GST) at the rate of 10% under the A New Tax System (Goods and Services Tax) Act 1999 (Cth) where the Sponsored Party is registered for GST. Where GST applies, the Sponsored Party shall issue a valid tax invoice and the Sponsor shall pay GST in addition to the Sponsorship Fee.
2.3 Payment shall be made [Payment Terms]. All payments shall be made in Australian dollars by bank transfer to the account nominated by the Sponsored Party.
2.4 Late payment: If any instalment is not received within fourteen (14) days of the due date, the Sponsored Party may charge interest on the overdue amount at the rate prescribed under the relevant state Penalty Interest Rate Act or equivalent legislation, calculated daily from the due date until the date of payment.
2.5 Tax deductibility: The Sponsor acknowledges that the deductibility of the Sponsorship Fee as a business expense under the Income Tax Assessment Act 1997 (Cth) section 8-1 depends on the commercial nexus between the sponsorship and the Sponsor's income-earning activities. The Sponsor is responsible for obtaining independent tax advice.
3. SPONSOR BENEFITS AND DELIVERABLES
3.1 In consideration for the Sponsorship Fee, the Sponsored Party shall provide the Sponsor with the following benefits and deliverables:
[Sponsor Deliverables]
3.2 The Sponsored Party shall use commercially reasonable efforts to deliver all benefits professionally and consistently with the Sponsor's brand standards. The Sponsored Party shall provide the Sponsor with reasonable prior notice of any promotional material featuring the Sponsor's name, logo, or trade marks and shall not publish or distribute such material without the Sponsor's prior written approval.
3.3 All deliverables shall comply with applicable advertising standards, including the AANA Code of Ethics and the Australian Influencer Marketing Code of Practice where relevant.
4. TERM
4.1 This Agreement commences on [Start Date] and continues until [End Date] (the "Term"), unless earlier terminated in accordance with this Agreement. The Agreement shall automatically expire at the end of the Term unless renewed by mutual written agreement.
5. INTELLECTUAL PROPERTY AND TRADE MARKS
5.1 Each Party grants the other a limited, non-exclusive, non-transferable, royalty-free licence to use the granting Party's name, logo, trade marks, and other intellectual property solely in connection with the Event and as contemplated by this Agreement. All such use requires prior written approval, which shall not be unreasonably withheld or delayed.
5.2 Neither Party acquires ownership rights in the other Party's intellectual property by virtue of this Agreement. Upon termination or expiry, each Party shall cease all use of the other Party's intellectual property within thirty (30) days. The parties acknowledge their obligations under the Trade Marks Act 1995 (Cth) in relation to authorised use.
6. SPONSORED PARTY OBLIGATIONS
6.1 The Sponsored Party shall: (a) organise and produce the Event in a professional manner consistent with the representations made to the Sponsor; (b) deliver all sponsorship benefits and deliverables as specified in this Agreement; (c) maintain all required licences, permits, and public liability insurance necessary for the Event; (d) comply with all applicable Commonwealth, state, and local laws including the Australian Consumer Law, Work Health and Safety legislation, and any applicable licencing requirements; and (e) not engage in any conduct that would bring the Sponsor into disrepute.
7. TERMINATION
7.1 Either Party may terminate this Agreement on thirty (30) days' written notice if the other Party commits a material breach that remains uncured after the notice period. Upon termination by the Sponsor due to the Sponsored Party's breach, the Sponsor shall be entitled to a pro-rata refund of the Sponsorship Fee corresponding to benefits not yet delivered.
7.2 The Sponsor may terminate this Agreement immediately upon written notice if the Sponsored Party enters voluntary administration, receivership, or is placed in liquidation under the Corporations Act 2001 (Cth).
8. INDEMNIFICATION
8.1 Each Party agrees to indemnify, defend, and hold harmless the other Party and its officers, directors, employees, and agents from and against any claims, losses, damages, liabilities, costs, and expenses (including reasonable legal costs on a solicitor-client basis) arising out of or relating to: (a) that Party's breach of this Agreement; or (b) that Party's negligent or wilful acts or omissions in connection with the Event.
9. NOTICES
All notices under this Agreement shall be in writing and delivered by hand, registered post, or email with read receipt to:
Sponsor: [Sponsor Name], Attn: [Sponsor Contact Person], [Sponsor Address], [Sponsor City], [Sponsor State] [Sponsor Postcode], Email: [Sponsor Email], Phone: [Sponsor Phone]
Sponsored Party: [Sponsored Party Name], [Sponsored Party Address], [Sponsored Party City], [Sponsored Party State] [Sponsored Party Postcode], Email: [Sponsored Party Email], Phone: [Sponsored Party Phone]
10. GOVERNING LAW AND DISPUTE RESOLUTION
10.1 This Agreement is governed by the laws of [Governing Law State], Australia, and the applicable laws of the Commonwealth of Australia, without regard to conflict of laws principles.
10.2 Any dispute arising under or in connection with this Agreement shall be resolved through [Dispute Resolution] [Governing Law State]. The prevailing party shall be entitled to recover reasonable legal costs.
11. GENERAL PROVISIONS
11.1 Confidentiality: Each Party agrees to maintain the confidentiality of the financial terms of this Agreement and any proprietary information received from the other Party, and shall not disclose such information to third parties without prior written consent, except as required by law.
11.2 Entire Agreement: This Agreement constitutes the entire agreement between the Parties with respect to the subject matter and supersedes all prior negotiations, representations, and understandings. This Agreement may only be amended by a written instrument signed by both Parties.
11.3 Severability: If any provision of this Agreement is found to be invalid or unenforceable under Australian law, it shall be severed to the minimum extent necessary, and the remaining provisions shall continue in full force and effect.
11.4 Waiver: A failure by either Party to enforce any provision of this Agreement shall not constitute a waiver of that Party's rights to enforce that provision in the future.
IN WITNESS WHEREOF, the Parties have executed this Sponsorship Agreement as of the Effective Date.
SPONSOR:
Name: [Sponsor Name]
Signed by: [Sponsor Contact Person]
Date: [Sponsor Sign Date]
SPONSORED PARTY:
Name: [Sponsored Party Name]
Date: [Sponsored Party Sign Date]
Sponsor
________________
Signature
Date: ________________
Sponsored Party
________________
Signature
Date: ________________
What Is a Sponsorship Agreement (Australia)?
A Sponsorship Agreement in Australia records the rights, fees, and obligations for the event, venue, or sponsorship arrangement between the parties under the Corporations Act 2001 (Cth).
In Australia, sponsorship agreements must address several distinct legal dimensions. The Income Tax Assessment Act 1997 (Cth) section 8-1 governs the deductibility of sponsorship fees as business expenses, and the GST Act 1999 governs the application of Goods and Services Tax to sponsorship payments. The Australian Consumer Law (ACL) — Schedule 2 of the Competition and Consumer Act 2010 (Cth) — section 18 prohibits misleading or deceptive representations in all promotional activities connected with the sponsorship. The Trade Marks Act 1995 (Cth) governs the authorised use of each party's intellectual property and branding.
Sponsorship arrangements operate across many sectors of the Australian economy: major corporate events, AFL, NRL, cricket, and netball team sponsorships, arts festivals, charity gala dinners, community sporting clubs, music festivals, individual athlete sponsorships, and academic competitions. In every case, the agreement should clearly define the sponsorship level, the total fee in AUD, GST treatment, the specific promotional deliverables, exclusivity arrangements, and the cancellation and refund policy.
The legal framework governing the Sponsorship Agreement (Australia) in Australia draws on several key statutes and regulatory bodies. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Parties executing a Sponsorship Agreement (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Corporations Act 2001 (Cth) sets the foundational requirements.
When Do You Need a Sponsorship Agreement (Australia)?
A written Sponsorship Agreement is needed whenever a business or individual agrees to provide financial or in-kind support in exchange for promotional benefits, however informal the arrangement may seem.
For businesses, a written agreement is essential to substantiate the commercial nexus between the sponsorship payment and the Sponsor's income-earning activities — a requirement for the payment to be deductible under section 8-1 of the Income Tax Assessment Act 1997 (Cth). Without a written agreement specifying the promotional benefits received, the ATO may characterise the payment as a non-deductible donation or private expense.
For event organisers and Sponsored Parties, a clear written agreement protects against disputes about what benefits were promised, confirms the Sponsor's branding is used correctly and consistently with their trade mark rights, and provides a clear framework for what happens if the event is cancelled, postponed, or downsized.
A Sponsorship Agreement is particularly important where the sponsorship is for a significant dollar amount, where the event has significant reputational consequences for the Sponsor, where exclusivity arrangements are a key commercial term, where GST and tax compliance are important, or where there is a real risk of cancellation or postponement. Even for smaller community club or charity sponsorships, a simple written agreement prevents misunderstandings and protects both parties.
Parties in Australia should prepare a Sponsorship Agreement (Australia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Sponsorship Agreement (Australia)
A well-drafted Australian Sponsorship Agreement should address the following key elements.
Party identification should include the full legal name, ABN, and address of both the Sponsor and the Sponsored Party. ABN disclosure is important for GST and tax compliance purposes.
The event description clause should clearly describe the event, program, or individual being sponsored, including the expected audience, location, date, and nature of the activities. The ACL section 18 requires all representations to be accurate and not misleading.
The sponsorship fee and GST clause should state the total fee in AUD, confirm whether it is inclusive or exclusive of GST at 10%, specify the payment schedule (lump sum or instalments), and confirm the Sponsored Party's obligation to issue a valid tax invoice.
The deliverables clause should list all promotional benefits with precision: logo placement specifications (size, placement, priority), number of delegate passes, exhibition space dimensions, speaking slots (duration, positioning), social media post requirements (number, platforms, timing), and any category exclusivity.
The intellectual property clause should grant each party a limited licence to use the other's branding solely in connection with the event, require prior written approval for all branded content, and confirm that ownership is not transferred.
The cancellation and force majeure clause should address what happens if the event is cancelled, postponed, or materially altered, and specify refund entitlements clearly.
The governing law clause should confirm the applicable state or territory law and provide for an efficient dispute resolution mechanism such as mediation before litigation.
Additional compliance elements for a Sponsorship Agreement (Australia) used in Australia include: Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Sponsorship Agreement (Australia) (Australia) [Legal document template]. Forms Legal. https://forms-legal.com/australia/business/contracts/sponsorship-agreement-australia
"Sponsorship Agreement (Australia) (Australia)." Forms Legal, 2026, https://forms-legal.com/australia/business/contracts/sponsorship-agreement-australia.
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title = {Sponsorship Agreement (Australia) (Australia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/australia/business/contracts/sponsorship-agreement-australia}},
note = {Free legal document template. Based on Corporations Act 2001 (Cth)}
}Also available for these jurisdictions:
Frequently Asked Questions
A sponsorship payment may be deductible as a business expense under section 8-1 of the Income Tax Assessment Act 1997 (Cth) if it is incurred in gaining or producing assessable income and there is a genuine commercial nexus between the sponsorship and the Sponsor's income-earning activities. Where the Sponsor receives identifiable promotional benefits — such as logo placement, brand exposure, speaking opportunities, and media mentions — the payment is more likely to be characterised as a deductible business expense. By contrast, a payment made with no expectation of commercial return, or made as a pure donation, may not be deductible under section 8-1 (though it may be deductible as a gift to a Deductible Gift Recipient under Division 30). GST at 10% is generally applicable to sponsorship payments where the Sponsored Party is GST-registered. Always consult a registered tax agent or solicitor for advice specific to your circumstances.
The Australian Consumer Law (ACL), which is Schedule 2 of the Competition and Consumer Act 2010 (Cth), applies to conduct in trade or commerce. Section 18 of the ACL prohibits conduct that is misleading or deceptive or is likely to mislead or deceive. In a sponsorship context, this means that the Sponsored Party must not make false or overstated representations about the event — such as inflated attendance figures, exaggerated audience demographics, or false claims about media coverage — to attract sponsorship. Similarly, the Sponsor must not make misleading representations about the nature or extent of its association with the event. Promotional content produced in connection with the sponsorship must also comply with the AANA Code of Ethics, which sets standards for truthful and transparent advertising.
Under the A New Tax System (Goods and Services Tax) Act 1999 (Cth), a payment made in exchange for promotional benefits is generally a taxable supply subject to GST at 10%. The Sponsored Party, if registered for GST, must issue a valid tax invoice to the Sponsor, and the Sponsor can claim an input tax credit (ITC) for the GST paid (provided the expense is related to the Sponsor's business activities). The sponsorship agreement should clearly state whether the sponsorship fee is expressed inclusive or exclusive of GST, and include a clause confirming the Sponsored Party's obligation to issue a tax invoice. If the Sponsored Party is not registered for GST (e.g., because it is a small non-profit under the turnover threshold), the agreement should reflect this. Parties should confirm the GST treatment with their tax advisers.
If an event is cancelled or postponed, the parties' rights depend on what the sponsorship agreement says. Without a clear cancellation clause, the parties may need to fall back on general contract law principles — including frustration of contract under common law — which can be uncertain and costly to litigate. A well-drafted Australian sponsorship agreement should include express provisions addressing: whether the Sponsor is entitled to a full refund, partial refund (e.g., 75%), or pro-rata refund based on benefits already delivered; what constitutes a force majeure event (e.g., acts of God, pandemic, government direction, natural disaster); the Sponsored Party's obligation to notify the Sponsor promptly; and whether the Sponsor may elect to transfer its sponsorship to a rescheduled event. The COVID-19 pandemic highlighted the importance of clear cancellation and force majeure provisions in event contracts throughout Australia.
Yes. Sponsorship arrangements involve the use of each party's intellectual property — logos, trade marks, brand names, event names, photographs, and social media content. Under the Trade Marks Act 1995 (Cth), an authorised use of a registered trade mark must meet the requirements of the Act to prevent deregistration challenges. The sponsorship agreement should include a clear licence clause granting each party a limited, non-exclusive, non-transferable licence to use the other party's intellectual property solely in connection with the event, subject to prior written approval. The agreement should specify that ownership of each party's intellectual property is not affected, that the licence terminates when the agreement ends, and that neither party may use the other's trade marks in a way that is misleading, defamatory, or inconsistent with the brand owner's guidelines.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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